G Mining’s permit allows early building at Oko West gold project in Guyana

G Mining Ventures (TSX: GMIN; US-OTC: GMINF) has received an interim environmental permit for its US$936-million capex Oko West gold project in Guyana, allowing it to begin early works construction ahead of schedule. 

The country’s Environmental Protection Agency (EPA) granted the interim permit — which is valid for one year — after G Mining submitted an environmental impact assessment (EIA) and environmental impact statement (EIS) in November.

G Mining is to begin building a barge landing facility, main access road and internal roads, it said on Tuesday. It’s also constructing an airstrip, permanent camp facility, water and sewage treatment plants, and power generation and communication tower.

Shares of G Mining Ventures gained 7.5% on Tuesday to close at $12.50 apiece in Toronto. They were up 4% more to $12.75 on Wednesday morning for a market capitalization of $2.7 billion.  

SCP Research maintained its buy rating and lifted its share price target to $16.10 from $15.10, putting the stock at about 0.56 times net asset value (NAV) versus peers Torex Gold Resources (TSX: TXG) and Lundin Gold (TSE: LUG) trading at 0.8 times and 1.3 times NAV, respectively.

Tocantinzinho

The permit comes after G Mining ramped up production from the Tocantinzinho gold mine in Brazil and before a definitive feasibility study for Oko West is due in the second quarter, paving the way for full construction to start by mid-year, SCP mining analyst Brandon Gaspar said in a note on Tuesday.

“Today’s early works permit is positive and reaffirms our view of Guyana as a top mining jurisdiction capable of seeing world class discoveries developed quickly with lower security risk,” Gaspar said. “This timeline positions G Mining to deliver first production from Oko West as early as fourth quarter 2027, three months earlier than we model.” 

The interim environmental permit is “an important step in reaching a construction decision for the Oko West project,” CEO Louis-Pierre Gignac said in a release. The final permit remains under EPA review.

CentroGold

G Mining reported on Wednesday that it produced 63,566 oz. gold last year and Tocantinzinho hit its capacity. Also in 2024, the company acquired the CentroGold project, an advanced exploration asset in Brazil with a JORC-compliant resource base, and its share price nearly doubled. 

In September, the company released a preliminary economic assessment for Oko West showing an after-tax net present value (NPV) at a 5% discount rate of US$1.4 billion, an internal rate of return (IRR) of 21% and a 3.8-year payback. The figures including the capex were estimated using long-term gold prices of US$1,950 per ounce.

Using a higher gold price of US$2,500 per oz., the NPV would rise to US$2.5 billion, with an IRR of 31% and payback of two years.

The project in north-central Guyana hosts a resource of 64.6 million indicated tonnes grading 2.05 grams gold per tonne for 4.3 million oz. and 19.2 million inferred tonnes grading 2.59 grams gold for 1.6 million ounces.